Sri Lanka forecasts 5% growth in 2026, aided by post-cyclone reconstruction
Sri Lanka expects its economy to expand by more than 5% next year, matching this year’s pace and significantly outstripping IMF projections, partly driven by reconstruction efforts following Cyclone Ditwah, a senior minister told Reuters on Wednesday.The storm hit in late November, killing nearly 650 people and affecting about 10% of Sri Lanka’s 22 million population. It caused major damage to infrastructure, farms, and tea estates, with rebuilding costs estimated at up to $7 billion in a country still recovering from economic collapse in 2022.
The Indian Ocean island has been receiving funds under an IMF bailout program, while additional emergency assistance has been pledged by global agencies and foreign governments for it to cope with its worst natural disaster since the 2004 tsunami.
